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Shares of Signet Jewelers (SIG) - Get Signet Jewelers Limited Report were down over 6% in morning trading after Tiffany & Co. (TIF) - Get Tiffany & Co. Report today reported weaker-than-expected sales.

Signet is expected to announce its first quarter financial results on Thursday.

Signet was downgraded to "Neutral" ahead of its 1Q report at Buckingham, as analyst Scott Krasik downgraded the company from "Buy" and lowered its price target to $65 from $86.

The analyst is cautious over Signet's sales trends over the next 12 months and the impact from heavy mall exposure. He expects 1Q same store sales to be at the very low end of what other mall based retailers report.

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Krasik also thinks the results will reinforce the bear thesis of inflated sales given aggressive credit standards, continued share losses, fewer margin levers, and increasing leverage.

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